All You Need to Know about Forex Trading Training

August 1, 2009 by  
Filed under Forex

When you are new to Forex trading, it is advisable to be equipped with the proper knowledge and understanding of what is involved in this business. If you are unprepared and you take the plunge, you might end up at the losing end. This is where the importance of Forex trading training comes in.

There are many training programs available today, and your goal is to find one that is most suitable to you. It may not necessarily be the best one out there, but it should meet certain criteria. What are these criteria, you may ask. Read on to find out.

A good Forex training course should teach you both the fundamental and the technical aspects of Forex trading. The fundamental aspects revolve around the factors that can affect the market, while the technical aspects focuses on data interpretation that will help you become more accurate in your future trades. Both aspects should be included in any Forex program, and if any of these is missing, then it is not a good program at all.

Aside from this, there are 3 invaluable elements that should be covered during training: money management, emotional stability, and the trading system.

* Money management: Every trader should learn how to effectively manage his finances. If there is no control over it, it could badly affect how he trades, and as a result, losses will be incurred. Many traders fail in this business because of a lack of understanding of this concept.

* Emotional stability: If you are not emotionally prepared, decisions when buying and selling can be affected. Your training program should teach you how to effectively manage your emotions, and maintain self-control.

* Trading systems: You should have a trading system that works for you, and reputable training programs will help you establish one. You see, if you do not have a system, and simply rely on what you hear and read from the net, TV, or newspaper, gaining profits will not be very consistent.

Spotting a Good Training Program

First, make sure the program focuses on the basic framework of Forex trading, as mentioned above. If you go directly to the advanced and highly complicated lessons but you do not understand the basics, you might not understand the trade at all.

Second, know the good from the bad. In this day and age, many companies and individuals sell supposedly effective training courses that are in reality, junk. They over-advertise, and give promises of success. To avoid getting ripped off, make sure to read customer reviews, and of course, do not just research on one course. Have at least 3 courses to compare against.

A Forex trading training is essential to your success. Therefore, it makes sense to choose one that will actually work for you.

Pros and Cons of Automated Forex Trading Robots

July 22, 2009 by  
Filed under Forex

It is no doubt that FOREX is indeed a huge market and with over $3 trillion transacted every day, the chance of getting large money is significant. But studies on the market also report that only 5% of the traders in this field are enjoying significant profit. This clearly shows that beginners and naive traders are finding it tough to survive in the market.

They make mistakes when it comes to following the market and analyzing the charts. Do these FOREX robots really work? Are these robots capable of bringing huge profits they boast about? Here is a quick brief article explaining the pros and cons of using these automated systems in FOREX market.

Undoubtedly computers are more efficient when it comes to accuracy and power. Thus with the help of computerized programs, these automated FOREX robots can perform your trade with greater accuracy. These robots do not feel tiredness or boredom so they can work 24*7 unlike human beings. Automated FOREX robots have high computational powers and greater analyzing capabilities and thus can easily outpreform an average human analyzing the minute details from FOREX graphs.

With these automated systems you can clearly witness the performance as most of these robots have back test results which are captured after making a certain number of trades. These results are clearly an indication of the performance of the robot and you can see these results before buying this product.

Automated FOREX robots can win your trades even in your absence and thus with these robots it is now possible to make money even when you are in a vacation with your family. These robots also help you to minimize your loss in the market as they tend to work accordingly to the market behavior.

Though these automated FOREX robots help you in winning trades these don’t come without risks and demerits. Most of these robots allow you to trade only a particular pair of currency and do not guarantee results if you change the parameters on your own. Also these robots take entire control of the trade and thus you can’t improve or equip yourself with more knowledge unless you analyze the results obtained from these robots.

With these robots getting increasingly more popular, many are starting to flood the market. Thus the probability of choosing a bogus robot is increasing and you need to be very careful when you are going for an automated FOREX trading robot.

Forex Trading Tips – Starters Must Follow These

July 20, 2009 by  
Filed under Forex

Forex trading is one of the most flourishing businesses of this age. It’s basically the currency exchange process, although if done at right time with the right amount, it can generate heavy amount of profits. Although it is very easy sounding and lucrative, it is extremely competitive and a considerable amount of financial risk is involved. If you wish to get on this incredible ride to success, there are some pieces of crucial information you need to learn before you can make profits in this business.

Following are some important Forex trading tips and information for those people who are not totally aware about the ups and downs of this business.

For getting maximum benefits, get a beginners training program. These programs include the basics of how things work in the market, important terminology, importance of OPM, and necessary processes you have to build for success in Forex trading. Good training programs take an overview of all the important aspects of the trading market and gives hands on experience of trading in the market to build up a trainee’s confidence.

There are certain fundamentals you should learn before you hop on the train. Things like different orders that are placed in buying and selling, bids, margins, rollover and leverage. A good training also focuses on stress management, critical thinking skills, time management, discipline etc.

Beginners Forex trading can be stressful. It’s also important to know the background of Forex market by studying the recent trends and exponentiation in rates.

Fortunately, there are several ways you can study Forex trading in today’s world. You can opt for online trading firm based trading and other types. Just be sure whatever method you choose, it’s the one that best suits your needs and expertise.

When starting out, you can generally invest a little money and see if the things work out for you. You have t be genuinely interested in this industry if it is going to work for you. If you invest a little money and then find yourself not interested in this line of work, you can easily opt out. So usually beginners are advised to start out low.

Keep in mind that you will need some sort of training before you can make real money through Forex trading. Be it online tutorials, books, eBooks, seminars or one-on-one sessions with brokers, you need something to get you started. Choosing the right type of training to suit your schedule and your interest area is critical, since people have different learning strengths.

Bottom line is that this is a great way to earn money, if you work from your strengths. Plan out your strategy, take proper training and learn well. It will not be long before you become an expert. Follow these above mentioned Forex trading tips as these tips will definitely help you in getting started in Forex trading.

Advantages of Online Currency Trading

July 20, 2009 by  
Filed under Forex

Forex trading can be exciting and profitable. With proper strategy and up-to-date knowledge, you can become quite successful in the market. To be successful in Forex trading, you need in-depth expertise on money markets, the global economy, and movement of currency worldwide. The industry is very complex, with millions of people in constant communication every day. To exchange currency online, there are some key steps you must take.

First off all, you have to find a reliable firm where you can open an account by investing in whatever amount of money they require. However, before you invest any real money, it is advisable to go through a research learning period first, where you look up different sources for tips and tricks on DVDs, eBooks, Websites and etc for getting some information on how things work around in the Forex trade markets.

Your first step is to do some research, learning everything you can about the Forex market. Never go with just one source, read around and see what others are saying. Watch DVD’s, read eBooks, websites, and old-fashioned books. Knowledge is power in this industry. Your second step is to find a reliable firm. Chances are, they are going to want you to deposit a certain dollar amount before you begin with them. Try to stay with a firm that supports online trading, as there are many advantages.

Following are some advantages of online currency trading:

  • The Web: The worldwide web connects billions of people online without the constraints of time or physical locations. With recent access to web on the go, you can stay connected wherever you are, whenever you want. That adds reliability and ease.
  • Flexible Timings: Although you constantly need to keep tabs on the market, you can virtually work whenever you want. You are just a click away from latest Forex rates and currency exchanges.
  • Analysis: This is another very important advantage of online Forex trading. Online tools and information systems let you analyze market situations and various global stats with the click of a mouse.
  • Tutorials: You can gain superb expertise on Forex trading by reading tutorials offered by Forex firms. There’s plenty of free and paid content that you can utilize to suit your needs and learn as much as you can.
  • Records: Personal trading can easily be recorded with proper software and available resources. This allows you to easily review facts, figures, and market trends while you are planning your next move. This record analysis is advised by all financial advisers and Forex traders, and can aid you in a successful career.
  • Online Resources: There are resources online that can help build up your expertise and your confidence in the line of Forex trading. There are some websites which focus on Forex trading tips, tricks, reviews, interviews with successful investors, forums, and online communities where you can read and get in touch with people engaged in the same line of work. You can get advice, get help, and connect with them.

Forex General Overview

July 19, 2009 by  
Filed under Forex

Foreign Exchange, popularly known as Forex, is a market where the buying and selling of currency takes place. Forex is the world’s largest trading market, with a large number or traders, brokers, and investors participating. The Forex system can be accessed 24 hours a day, Monday through Friday, and access is available via the internet at any time. The Forex market is very much different than tradition trade markets, including the stock market. One of the major differences is the extremely large amount of money that is involved.

With more than 3 trillion dollars traded every day, Forex involves trading currencies all over the world such as British Pound, US Dollar, Japanese Yen and EURO. Currency is paired up in the market against each other. The most common currency pairs are EURUSD (Euro/ US Dollar), GBP/USD (British pound/ US dollar), and USD/JPY (US dollar/Japanese Yen). These pairs are commonly referred to as ‘Majors’ and ‘Minors’.

Forex, unlike other exchange markets, is an Interbank/Interdealer market where the transfer or trading is done via a broker or a bank. Forex is also referred as over the counter (OTC) market, because it has no central building or land based office and all the trading is done on the phone or via internet. That is why the Foreign Exchange market is considered to be the most liquid market in the world.

Since Forex involves currencies around the world, there are a lot of factors that could affect the prices of currency trading. Such factors are affected by political, economical or social changes of a particular country. Some causes of the currency prices fluctuation may be due to change in quotes or policies of banks since a lot of major banks around the world are the major players in the Forex Market.

The Forex market is very unstable due to everyday factors that could easily affect currency trading. That is why Forex is a very serious matter and a lot of traders or brokers offer Forex education through Forex Trading courses and Forex Books which are available over the internet. If you are considering trading in Forex, it is important for you to undergo these courses. Forex requires various skills and knowledge for you to be a successful trader.

In trading, you will encounter terms used such as pips, spread and bid that may sound confusing. Forex has management tools that can make it easier for a new comer. For example, you can set up a demo account that allows a new trader to trade with “fake” money in order to get a feel for the market. This is a great tool to utilize to prepare you in trading with real money.

It is important to remember that the key to a successful trader is patience and discipline. Forex is a not for those who are over-confident and without prior knowledge. Skill, knowledge, and experience are the keys to success in the Forex market.

Forex Books

April 6, 2009 by  
Filed under Forex

Forex Books are texts and documents that provide traders information on forex trading for free or for a fee. A Forex Book generally gives value to a trader or broker by providing general information on trading skills, strategies, signals, systems and promotional material.

There are basically two types of Forex Books available. One is a normal book printed out, the one that you normally find in bookstores, and the other one is an eBook, meaning electronic book, which you can download via the internet.

The Forex market trading is a complex subject and gaining a full understanding of the matter may confuse newcomers. With the exception of Forex training courses, Forex books and eBooks are becoming one of the most popular ways of learning the dynamics of the Forex market.

It is important to keep in mind that Forex Books or eBooks are available in variety, and not everyone is an expert. It is wise to only purchase a Forex Book or eBook from trusted authors, traders and brokers.

Here are a few factors to consider when choosing  good Forex book:

1. Author

A good Forex Book or eBook is usually authored by a well known and successful trader or broker. The author should be well respected in the trading community and the background of the author’s trading experience should reflect his success in the Forex Market.

2. CONTENT

The book should indicate its content and purpose to its reader. You should also consider if the author only wants to sell a product or if he really wants to educate his readers. Unfortunately the market is flooded with peopole just trying to make some quick cash, and will not help you.

Here are some Forex Books recommended for reading to get you started with the Forex Trading:

1. The Complete Guide to Day Trading: A Practical Manual from a Professional Day Trading Coach by Markus Heitkoetter
This is a three-part guide, professional day trading guide book by Markus Heitkoetter that lays out a simple, proven system for trading success. He covered topics from the basic essentials of trading to the actual process of making money in the markets.

2. The Currency Trader’s Handbook: Strategies for Forex success by Rob Booker

This is a Forex eBook about currency trading with money management strategies, trading systems, and other topics about the Forex Market.

3. The Complete Idiot’s Guide to Foreign Currency Trading by Gary Tilkin and Lita Epstein

This Forex Book is an easy-to-follow guide that starts at the beginning and provides basic information about Forex with definitions of market terminology and how to place your first order.

4. Currency Trading for Dummies: A reference for the rest of us by Mark Galant and Brian Dolan

This Forex Book offers a guide that gives you a step-by-step action plan for understanding and trading the Forex market. It gives practical guidance and savvy tips, trading fundamentals, and technical analysis.

Forex Capital Markets

April 6, 2009 by  
Filed under Forex

Forex, short for Foreign Exchange, is the conversion of one currency to another in a real-time trade. As a business venture, you could potentially earn money easily so long as you have knowledge of the industry, and the required information necessary to make a favorable investment.

Let’s look at an example. Let’s say you exchanged 500 USD for 22,660 Philippine Pesos, resulting in a 45.32 unit exchange rate. After a few months the US economy goes down, and the USD value dropped to 44.88 in Pesos, resulting in you making money. If you wanted to make even more money, you could now invest in the weaker USD and wait for it to reclaim its value in the market.

After several days, as you have anticipated, the dollar has reclaimed its former value, making a new rate of 1 USD : 45.55 PHP (Philippine Pesos). Now that you have even more money to invest, you can buy another currency and repeat the process. Imagine if you had invested ten times as much as the example, or even one hundred times the amount. Hopefully by now you are beginning to see the Forex market’s potential.

Forex Capital Markets are so dynamic, fast-paced, and large that you can literally make thousands in an instant. The Forex market is open 24 hours a day, Monday through Friday. Many people prefer engaging in Forex trading more than any other, including stocks. There is less risk, the market is open longer, and your assets are less vulnerable. These are some of the very reasons why many investors see Forex trading as a direct competitor to the stock market. People all over the world are doing their best to get involved in this promising commercial undertaking. While this may be one of the oldest trading markets in the world, it has never been a very popular one. However in recent times, due to regulation changes and technological advancements, it has become one of the fastest growing industries of the 21st century.

Forex got its start in banks, involving mostly large sums of money. Nearly two decades ago, it opened its doors for businessmen and women to participate. Rates where changed to compete with banks, and private brokers started getting involved. All of these events made Forex what it is today. Now just about anybody can get involved and start making money the same day.

Foreign Exchange Platforms

April 4, 2009 by  
Filed under Forex

A Foreign Exchange platform is computer software that serves as a channel for Forex market information used in online Forex trading. The software presents information such as the current exchange rates for currencies, charts, and data regarding the market. There are two types of platforms available. Historically the only option available was software you download onto your computer, that connected through a private network to display information. Although this option still exists, web-based platforms are becoming far more common. Most times you can download a web-based platform for free from various Forex websites, however some more advanced brokers may charge a minimal fee. Regardless, a Foreign Exchange platform is beneficial to those with internet access, and highly convenient for those not wishing to leave their homes.

FACTORS TO CONSIDER WHEN CHOOSING FOREX PLATFORMS

1. DOWNLOAD CHARGE

As mentioned previously, you can download some Forex platforms without a charge. However, those platforms that do have charges generally have additional features that can enhance your trading session. This is something to keep in mind when trading.

2. COMPATIBILITY

As with any computer program, it is important you check the system requirements before downloading, to be sure you computer can run the platform. Pay special attention to which operating system the program is designed for. Web-based trading platforms can generally be run on any operating system, however they may prefer a specific web browser. Review the download page thoroughly.

3. HISTORICAL DATA

When looking for a platform that fits your needs, consider the importance of your platform keeping a record of all transactions. An exact history of every trade is a must-have in this industry. Not only do you need these on a daily basis for real-time trading, but also on a long term basis so you can review mistakes.

4. TECHNICAL INDICATORS

The inclusion of technical indicators can be of great value when searching for the proper platform. It will show you all previous prices of a given currency, giving you extended knowledge when trying to predict the future value of a currency.

5. GRAPHICAL USER INTERFACE (GUI)

The platform you select should be pleasant to look at, and simple to operate. Any tools included in the platform should be easy to find, and utilize.

6. BACK TESTING

Back testing is a Forex strategy where traders are allowed to simulate past trading strategy based on previous data, to see its effectiveness in the future. Check to see if the platform you are considering supports back testing, as it can save you a great deal of money that may be lost in trial and error.

GETTING STARTED WITH FOREX PLATFORMS

Most of the Forex programs on the market today offer free trial periods so you can test their software, and it would be wise to download a few of them to take advantage of this. You can open up a demo account before you start trading with real money. This is a great opportunity to put your skills to the test to see if you come up with favorable trades.

When you feel that you are confident enough to trade for real money, start up with a micro or mini account with small leverages. Start from the bottom and work your way to the top. That way, you can almost guarantee yourself profit with minimal loss.

« Previous Page